Lets talk first about New York State Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh constantly offer a beautiful breakfast and have individuals actually learn about the program we should head to the room where we are able to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I imply you know if you simply start to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I mean consider how many actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they do not pay anything till they actually get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their bank account and they can really trust Wonder trust that the process has actually been finished and the number of you believe you have actually processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you require you require experts on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re speaking about something really important today the worker retention credit which the majority of you have never ever heard of I certainly had not heard of it up until extremely just recently and discovered a lot about it due to the fact that this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank supervisor and say give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I simply need to make sure we got that point I indicate that’s a huge distinction a loan versus cash money I like cash money that’s what we’re talking about all right and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the original cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned an organization but it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the mayhem of the pandemic so they wished to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP money would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge concern is why does nobody understand about this because appearance when I first became aware of this when I first fulfilled Josh you understand I have actually got lots of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous lots of investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them carefully to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even called to my politician pals Guv Senators they didn’t understand about it I indicate that’s how you know that’s how false information is that there’s no details out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you know what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was turmoil because remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not actually he or she’s never done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this business and bottom line my firm Kevin has actually been in business given that 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big big business clients have worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is available to all employers despite size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries differs by whether an employer had, usually, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance generally supply competence and assistance to assist businesses browse the intricate procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? New York State Employee Retention Credit
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon factors such as your market, income, and operations. They can help determine if you satisfy the requirements for the credit and identify the maximum credit quantity you can declare.
Documentation and Calculation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based on qualified incomes and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your past payroll records and financials to identify prospective chances for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the needed types and documentation in your place. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually developed gradually. These companies remain updated with the latest changes and guarantee that your filings adhere to the most existing standards. They can also supply ongoing assistance if the IRS demands extra info or carries out an audit related to your ERC claim.
It is essential to research and veterinarian any company using ERC filing assistance to guarantee their trustworthiness and expertise. Try to find established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who offer ERC filing assistance.
Keep in mind that while these business can supply important support, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit services, tax-exempt organizations, and certain governmental entities. To qualify, employers need to fulfill one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As mentioned earlier, for 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (up to 70%) of certified wages paid to employees, including specific health insurance costs. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. Nevertheless, the same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, enabling eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for services to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Type 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of work taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have progressed gradually. The best strategy is to consult with a tax expert or go to the official internal revenue service website for the most comprehensive and up-to-date info concerning the ERC, including any current legal changes or updates.
To qualify for the ERC, a service needs to meet one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, federal government entities and companies that received a PPP loan might have limitations on declaring the credit.
The process for claiming the ERC involves finishing the needed forms and including the credit on your employment income tax return (usually Type 941). The exact time it takes to process the credit can differ based on several factors, consisting of the complexity of your company and the work of the internal revenue service. It’s recommended to consult with a tax professional for guidance particular to your circumstance.
There are a number of business that can assist with the procedure of declaring the ERC. Some widely known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based upon basic knowledge and might not show the most recent updates or changes to the ERC. It is very important to consult with a tax professional or go to the main internal revenue service website for the most accurate and up-to-date information concerning eligibility, declaring treatments, and available support.
Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled only for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments but also a portion of the cost of company.
provided healthcare. New York State Employee Retention Credit
Payment.
Employers can be immediately reimbursed for the credit by decreasing the quantity of payroll taxes they.